End-Court Rejects PCC Challenge Against EUR100M Loan At Oltchim

05.05.2011 By Andrei Circhelan

A southern Romanian court of appeals irrevocably rejected on May 4 a lawsuit by German PCC SE fighting the decision of Romanian state-owned chemical company Oltchim (OLT.RO) to take out a EUR100 million loan, Oltchim said Thursday.

PCC SE went to court challenging a decision made by Oltchim shareholders on September 27, 2010, to take out a loan worth EUR100 million.

Oltchim's embattled shareholding structure includes the Economy Ministry with 54.79% and German group PCC SE with 12.15%. PCC and Oltchim's executive management have a long-running history of clashes in the media and in court on several topics.

Oltchim management believes PCC SE seeks to discredit the company's activity, in a bid for "easy and cheap" takeover.

The chemical plant will be put up for privatization in 2012, as the final chapter in a privatization scheme hatched by the Romanian government since 1997.

At the end of 2010, Oltchim had debts worth 2.289 billion lei (some EUR545 million). Between 2007 and 2010, the company posted a cumulated loss of RON745 million. (EUR1=RON4.1065)